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Are your payroll taxes still being withheld from your check


Mr. Silly
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I don't think it's supposed to start until September

https://abc13.com/payroll-tax-relief-income-suspension-fica-suspended-covid-19-financial-help/6373928/

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Beginning Sept. 1, the payroll tax relief program is scheduled to start. With this program, a portion of income tax from an employee's paycheck that is usually withheld by their employer won't be anymore.

 

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21 minutes ago, Kirby said:

I don't think it's supposed to start until September

https://abc13.com/payroll-tax-relief-income-suspension-fica-suspended-covid-19-financial-help/6373928/

Beginning Sept. 1, the payroll tax relief program is scheduled to start. With this program, a portion of income tax from an employee's paycheck that is usually withheld by their employer won't be anymore.

The accumulated "relief" is on temporary. It's supposed to be collected later, meaning many people getting it will be saving it instead of spending it because they know they'll have to pay it eventually.

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25 minutes ago, Kzoo said:

Good answer.

 

Do you prefer withholding incrementally or waiting until later? I imagine it improves cash flow short term, but likewise bites hard at the end.  Proper budget planning likely helps, but is also likely not as easy for smaller businesses to manage?  I see the "well run" businesses doing a fine job, but the "not so well run" folks seeing some issues come December. What do you see?

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1 minute ago, Razors Edge said:

Do you prefer withholding incrementally or waiting until later? I imagine it improves cash flow short term, but likewise bites hard at the end.  Proper budget planning likely helps, but is also likely not as easy for smaller businesses to manage?  I see the "well run" businesses doing a fine job, but the "not so well run" folks seeing some issues come December. What do you see?

How many real people do you know who will save it?  Too many always fail the you can pay me now or pay me later test.

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3 minutes ago, maddmaxx said:

How many real people do you know who will save it?  Too many always fail the you can pay me now or pay me later test.

Not sure how it works for anybody, but it would be interesting to see.  So, employees don't get their taxes taken out for Sept-Dec, and then what? Have a ginormous amount taken out in Jan? Or just end up owing more or not getting a refund in April?

I was thinking it was going to be on the employers end, but it looks like it might just be a pay me later sort of thing.

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5 minutes ago, Razors Edge said:

Not sure how it works for anybody, but it would be interesting to see.  So, employees don't get their taxes taken out for Sept-Dec, and then what? Have a ginormous amount taken out in Jan? Or just end up owing more or not getting a refund in April?

I was thinking it was going to be on the employers end, but it looks like it might just be a pay me later sort of thing.

What happened the last time there was a tax holiday/rate drop.  Folks were screaming nationwide about their taxes. Have they suddenly gotten smarter about gift horses?

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33 minutes ago, Razors Edge said:

Do you prefer withholding incrementally or waiting until later? I imagine it improves cash flow short term, but likewise bites hard at the end.  Proper budget planning likely helps, but is also likely not as easy for smaller businesses to manage?  I see the "well run" businesses doing a fine job, but the "not so well run" folks seeing some issues come December. What do you see?

I prefer withholding incrementally so I am not hit with a $5,000 (or whatever) tax bill next year.  

Will we have to estimate what the tax will be so we're not hit with a fine for not withholding enough?

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